29 November 2013
PPHE Hotel Group Limited
("the Company")
Refinancing of three London hotels and certain Dutch hotels
The Company is pleased to announce that certain of its wholly-owned subsidiaries have entered into a facility agreement with Aareal Bank AG (Aareal) to refinance three of the group's four owned London hotels - Park Plaza Riverbank, Park Plaza Victoria and Park Plaza Sherlock Holmes - and five Dutch hotels which it operates and owns - Park Plaza Victoria Amsterdam, Park Plaza Vondelpark, Park Plaza Eindhoven, Park Plaza Amsterdam Airportand Park Plaza Utrecht (the London and Dutch hotels, together the Hotels). At the group's option and subject to satisfaction of certain conditions, the facility will also refinance the existing development facility for the recently opened art'otel amsterdam, which matures in Q1 2014.
The refinancing involves a 5-year term facility comprising a sterling tranche of £167,600,000 and a euro tranche of €153,191,000. The Hotels were previously financed by three separate facilities provided by Aareal with various maturity dates between December 2013 and September 2017. As well as refinancing the existing facilities, the facility will fund capital expenditure at the Hotels.
The facility will be secured by, inter alia, first legal charges over each Hotel and pledges over the shares in each hotel owner and their related operating subsidiaries.
The facility agreement, which is subject to certain conditions precedent being fulfilled, is expected to complete on 3 December 2013. Further details on the facility agreement will be provided to shareholders on or about that date
Boris Ivesha, President & Chief Executive Officer of PPHE Hotel Group Limited, commented:
"We are delighted to have secured the refinance of these hotels. This agreement builds on the group's existing relationship with Aareal Bank AG in the UK and the Netherlands and we are delighted with its continuing confidence, commitment and support.
The new facility enables us to invest further in these well-established and well-performing hotels and our experienced management will continue on optimising their performance, growing their market share and delivering great customer service."
Enquiries:
PPHE Hotel Group Limited
Chen Moravsky, Chief Financial Officer
Tel: +31 (0) 20 717 8603
Hudson Sandler
Wendy Baker/Kate Hoare
Tel: +44 (0) 20 7796 4133
Note to editors:
PPHE Hotel Group Limited (formerly Park Plaza Hotels Limited) is a Guernsey registered company, which, through its subsidiaries, jointly controlled entities and associates, owns, leases, operates, franchises and develops full service upscale and lifestyle hotels in major gateway cities and regional centres, predominantly in Europe.
The majority of the group's hotels operate under two distinct brands, Park Plaza® Hotels & Resorts and art'otel® . The Company has an exclusive licence from CarlsonSM, a global privately owned hospitality and travel company, to develop and operate Park Plaza® Hotels & Resorts in Europe, the Middle East and Africa. The art'otel® brand is fully owned by the group.
The group has a minority ownership interest in the Arenaturist group, one of Croatia's leading hospitality companies. The group's portfolio of owned, leased, managed and franchised hotels comprises 38 hotels offering a total of more than 8,200 rooms. Its development pipeline includes four new hotels, which together are expected to add nearly 800 rooms to the portfolio by the end of 2015.
Our company:
www.pphe.com
Our brands:
www.parkplaza.com
www.artotels.com
www.arenaturist.com
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